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BL Premium reports that the Road Accident Fund (RAF) paid R231.7m in performance rewards despite receiving an adverse audit opinion, the standing committee on public accounts (Scopa) heard on Monday.
The figure, disclosed in the RAF’s annual report tabled before parliament, has drawn scrutiny from Scopa, which is conducting a formal inquiry into the fund’s financial and governance failures. The performance rewards were paid in a year when the Auditor-General of SA found the RAF’s financial statements to be materially misstated. Scopa has raised concerns about the appropriateness of performance rewards in the context of audit noncompliance and unresolved liabilities. During recent hearings, committee members questioned whether the RAF’s internal performance metrics were sufficiently robust to justify the scale of bonuses paid.
The inquiry has also heard testimony from suspended officials and former executives, including former CEO Collins Letsoalo, who described a breakdown in internal controls and irregular procurement practices. The RAF’s annual report confirmed that the fund remained in breach of the Public Finance Management Act, which required accurate and complete financial reporting. The newly-appointed interim board’s immediate focus was to conduct a comprehensive assessment to identify areas for short-term improvement, RAF chairperson Kenneth Brown indicated.
- Read the full original of the report in the above regard by Tara Roos at BusinessLive
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